Philips Extends Respironics Offer

Philips Electronics NV said it is extending until Feb. 22 its nearly $5.2 billion offer for Respironics Inc. because it has not yet received approval from the European Union. Philips, which announced Dec. 21 that it would buy Respironics, the Murrysville, Pa., maker of sleep disorder treatment products, originally said the offer to shareholders would expire Feb. 1. The deal has received U.S. regulatory approval. The EU has given Respironics until March 5 to answer questions it has about the merger. Netherlands-based Philips, the world’s biggest lighting maker and Europe’s biggest consumer electronics producer, said it is paying $66 per share in cash for Respironics (NASDAQ:RESP), which represented a 24-percent premium over the company’s closing price of $53.11 on Dec. 20. On Monday, Respironics was trading at $65.59 at midday. Philips said it had received a preliminary number of tenders for about 60 million Respironics shares by Feb. 1, representing about 77 percent of the fully diluted outstanding shares. The deal is expected to close by the end of the first fiscal quarter. SOURCE: Pittsburgh Business Times